RDVT.NASDAQRed Violet, INC

Form 4: Red Violet Director Lisa Stanton Receives Equity Grant

Sentiment:

Insider Transaction Report


Red Violet, Inc. Director Lisa M. Stanton received a grant of 4,450 restricted stock units, increasing her total beneficial ownership to 31,265 RSUs.

Summary

  • Lisa M. Stanton, a Director of Red Violet, Inc. (RDVT), received a grant of 4,450 restricted stock units (RSUs) on December 19, 2025.
  • The RSUs are convertible into common stock on a one-for-one basis.
  • The new grant includes 2,130 RSUs for serving on the Board of Directors, 1,625 RSUs for serving on the Audit Committee, and 695 RSUs for serving as Chair of the Audit Committee.
  • These 4,450 RSUs will vest in approximately three equal installments on December 1, 2026, December 1, 2027, and December 1, 2028, subject to accelerated vesting conditions.
  • Following this transaction, Lisa M. Stanton beneficially owns a total of 31,265 RSUs, which includes previously granted RSUs from November 30, 2023 (1,666 RSUs), April 23, 2024 (1,333 RSUs), November 4, 2024 (4,480 RSUs), and March 4, 2025 (644 RSUs).

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. While a Form 4 is a routine disclosure, the grant of equity to a director is generally viewed favorably as it aligns the director's financial interests with those of the shareholders, promoting long-term value creation. There are no negative implications from this specific filing.

Positives

  • The grant of restricted stock units to a director aligns management's interests with those of shareholders, as the value of the compensation is tied to the company's stock performance.
  • Equity compensation is a standard practice to attract and retain qualified board members.

Future Outlook

The future outlook indicates that Lisa M. Stanton's beneficial ownership of Red Violet common stock will increase as her restricted stock units vest over the next three years, with vesting dates extending through December 2028.

Industry Context

The grant of restricted stock units to a director is a common practice in publicly traded companies across various industries. It serves as a form of long-term incentive compensation, aligning the interests of the director with the long-term performance of the company and its shareholders.

Comparison to Industry Standards

  • Equity compensation for directors, particularly through restricted stock units with multi-year vesting schedules, is a widely adopted practice among U.S. public companies, including those in the technology and data analytics sectors like Red Violet.
  • The structure of the grant, differentiating between general board service and committee roles (Audit Committee member and Chair), is also a common approach to reflect varying levels of responsibility and time commitment.

Stakeholder Impact

  • Shareholders: The grant of equity to a director aligns the director's incentives with shareholder interests, potentially leading to decisions that enhance long-term shareholder value.
  • Employees: No direct impact on employees is indicated by this filing.

Next Steps

  • The granted restricted stock units will vest in installments on December 1, 2026, December 1, 2027, and December 1, 2028, converting into common stock of Red Violet, Inc.

Key Dates

DateDescription
11/30/2023Original grant date for 1,666 RSUs to Lisa M. Stanton.
04/23/2024Original grant date for 1,333 RSUs to Lisa M. Stanton.
11/04/2024Original grant date for 4,480 RSUs to Lisa M. Stanton.
03/04/2025Original grant date for 644 RSUs to Lisa M. Stanton.
12/19/2025Date of the reported transaction: Lisa M. Stanton received a grant of 4,450 restricted stock units.
12/22/2025Date the Form 4 was signed by Lisa M. Stanton.
11/01/2026First vesting date for 4,480 RSUs (granted 11/04/2024) and 644 RSUs (granted 03/04/2025).
12/01/2026First vesting date for the 4,450 RSUs (granted 12/19/2025) and the sole vesting date for 1,666 RSUs (granted 11/30/2023) and 1,333 RSUs (granted 04/23/2024).
11/01/2027Second vesting date for 4,480 RSUs (granted 11/04/2024) and 644 RSUs (granted 03/04/2025).
12/01/2027Second vesting date for the 4,450 RSUs granted on 12/19/2025.
12/01/2028Third vesting date for the 4,450 RSUs granted on 12/19/2025.

Recommendation

hold

This Form 4 filing details a routine equity compensation grant to a director. While it indicates alignment of interests between the director and shareholders, it does not provide sufficient new information regarding the company's operational performance, financial health, or strategic direction to warrant a change in investment recommendation. It is a standard governance event.

Keywords

Red Violet, RDVT, Form 4, Restricted Stock Units, RSU Grant, Director Compensation, Insider Transaction, Equity Compensation

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